Will My Spouse's Bad Credit Affect My Credit Score?

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READER QUESTION

I married someone with bad credit. Will it affect my credit? How does that work?

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Will my spouses bad credit affect my credit score
Bills.com Resident Expert
Feb 06, 2012
HIGHLIGHTS
  • Exercise caution before being added to an account with a bad payment history.
  • Review which spouse is responsible for debt in one spouse's name.
  • Understand the risks of co-signing.
BILL'S ANSWER

Thank you for your question about how your credit rating is affected by your spouse's bad credit.

Accounts are Reported to Cardholder's Credit Report

Do not worry about your personal credit going bad because of your spouse's bad credit. The only time your credit would be reported jointly would be if you applied for joint credit in the future. Even then a credit report would still identify those credit items that you were solely responsible for and those that your partner was responsible for.

Co-borrower's are Jointly Responsible

You will each continue to have your own credit file. If you apply for loans/credit as an individual, they will only look at your credit record. If you apply jointly for a loan as co-borrowers, they will look at both your reports, but they would do the same thing if you were not married and applying for a joint loan.

Generally speaking, simply marrying a person with a poor credit history will not damage the spouse's credit. The only way that I can foresee your credit being affected by your spouse's poor credit history is if you added yourself as an authorized user on any of your spouse's accounts with less-than-perfect payment histories. If you're added to any of your partner's accounts with that have delinquent payment histories, these accounts could appear on your credit report as well, thereby damaging your credit score.

Having a Co-signer Can Help Build Credit Score

On the other hand, you may be able to help improve your spouse's credit score by adding him/her as an authorized user on some of your healthy credit card accounts, or by co-signing on a small loan with them, such as an unsecured personal loan. You can use your good credit to help you establish new credit lines, which should have a positive influence on your partner's credit score.

Risks of Co-signing

Co-signing on a loan is not something I normally recommend, because of the risks that the co-signer takes. Before anyone agrees to co-sign on a loan, please read all about co-signing for a loan.

You and your spouse will find a great Bills.com article describing ways to improve/build credit entitled Credit Building From Scratch. If you seek a home loan, read How to Apply for a Mortgage When a Spouse Has Bad Credit.

If you would like to find out more about credit, credit scoring, and ways to improve your credit, I also encourage you to visit the Credit Solutions and Resources page at Bills.com.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Comments (89)


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Amber A.
Beverly Hills, CA  |  February 06, 2012
Hi There! I have a health insurance bill that is currently in collections that I will not pay because it the hospital is double dipping, and the agency is saying that it will not only affect my credit, but it will also damage my husbands? Is this true, will it mess with his or was it just another scare tactic?
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Bills.com
February 08, 2012
Did your spouse sign a guarantor agreement when you checked into the hospital? If so, then the collection agency's claim is a fact. If you live in one of the 40 common law family law states, then the claim is much more far-fetched, but not impossible if the medical procedure was non-elective. If you live in a community property state, or a state with a doctrine of necessaries law, then the claim is plausible.

I realize you want a simple yes or no answer. The law does not always work that way, especially for questions like yours.
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Kevin V.
Pembroke Pines, FL  |  January 31, 2012
Quick question. I'm having my brother co-sign on an auto loan, will the finance company only look at his credit or do they combine mine and is somehow?
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Bills.com
January 31, 2012
The underwriter will most likely pull the credit reports on both co-signers.
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Kevin V.
Pembroke Pines, FL  |  January 31, 2012
Thank you.
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Carol C.
Staten Island, NY  |  January 11, 2012
My husband is an authorized user on 1 account of mine and I on 1 of his. My credit is better than his and continues to improve and I suspect that his is about to decline even further. Is removing him from authorized user on my account and myself on his account enough to save my credit or is it too late or do I need to do anything else???? We don't have any joint credit card accounts.
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Bills.com
January 11, 2012
You are asking about what is called piggybacking in the credit report business. Click on the hyperlink I just mentioned to learn more about how a status change in an account can harm or help the credit score of an authorized user.
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Emmie M.
Tampa, FL  |  January 03, 2012
My husband's credit is not good and he is making payments on money he owes. We do not have joint accounts and I just recently added myself to his car insurance, that is the ONLY thing that both our name is on. Does that make me eligible for the credit people to come after me for money? I did not think of this before, but it was cheaper for us to have both cars insured together, so i went for it. Now I am thinking that it might not have been a good idea? Thanks so much!
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Bills.com
January 03, 2012
Being listed on a debtor's insurance does not make you financially or legally responsible for the debtor's liabilities. However, being married to a debtor can, in community property states, make the community's assets at risk. If your spouse is in formal payment agreements with his creditors, he is not at risk for a lawsuit that could lead to a judgment, followed by a wage garnishment or bank levy.

If he is sued by anyone, you took the proper step to protect yourself by keeping separate bank accounts. Your wages will be off-limits, should a judgment against him be obtained.
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Emmie M.
Tampa, FL  |  January 03, 2012
That's what I needed to know, thank you :)
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Dianne S.
Tallahassee, FL  |  December 07, 2011
I have been married for almost 2 years now but my husband and I don't have any joint accounts. I'm afraid to have joint accounts with him because of his low credit score. It's required by law for us to have a joint bank accounts as a proof that our marriage is legit since I am not here from US. He has a checking account and debit card accounts I'm hesitant to be added to his account because I'm afraid that I might have the same credit score as his. If I have my name added as a second cardholer to his checking account and debit cards will it affect my score in the future? Please advise. Thank you. I haven't opened any bank accounts here in US because I haven't had any jobs ever since I got here. I'm planning to open bank account and start building my credit score as soon as a get a job.
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Bills.com
December 07, 2011
You are correct, by adding your name to your husband's account it will be difficult for you to build up a good credit score.

I recommend that you read bills article about building credit from scratch. Getting a secured card, with a small limit to begin with is a good starting place. Budget carefully and avoid overdraft protection facilities. If you want to protect yourself from your husband's bad usage of credit, then open a joint account that does not have any credit options associated with it. Make clear to the bank officials that you are seeking an account that does not include any credit cards or credit facilities that have not been approved by all account owners. Make sure that the bank provides these assurances in writing.
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Miami, FL  |  November 21, 2011
My husband is trying to establish his credit but needs a car desperately, I've decided to purchase his car under my name and wait atleast a year until his credit re-establish. He applied for two credit cards and was approved for $300. Can pruchasing a car under my name affect my credit if I decided to lease a car for me?
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Bills.com
November 21, 2011
Because your credit was used to purchase your husband's car, the monthly car payment will both appear on your credit report and be used when calculating your debt-to-income (DTI) ratio. If the payment is always made in a timely manner, that will help your credit score. However, it could be the case that the new car payment lowers your DTI to the point where it affects your ability to qualify for the car lease. It all depends on how much you earn and what other debts appear on your credit report.
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Kay T.
Saint Paul, MN  |  November 17, 2011
My husband just recently added me as a user on one of his credit cards. I have a weaker credit history than he does- will this affect his credit score?
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Bills.com
November 17, 2011
No, the primary card holder's credit score will not be affected. You mentioned your credit score is weak. If the primary's credit score is strong, the secondary's credit score will improve. However, if the primary's score starts to suffer due to delinquencies and so on, the secondary's score will be harmed. My point is, this sword has two edges.

Maintaining a good credit score takes work. Monitor your credit reports and read Bills.com great information about improving your credit score.
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Jennifer B.
Phoenix, AZ  |  November 04, 2011
My husband has gotten himself into a LOT of financial trouble while not working. I have kept the household bills current, and the mortgage and our current car are in my name ONLY and always have been. We have also ALWAYS had seperate bank accounts. His car was recently repo'd - he had it before we ever got married. We live in a community property state. Can they come after my house, bank accounts, or car?
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Bills.com
November 04, 2011
You indicated you reside in Arizona, which as you mentioned, is one of a dozen community property states. Please see the following Bills.com resources for a general overview of your rights and liabilities:

Consult with an Arizona lawyer who has family law experience to learn your liability precisely.

Thanks for your feedback!
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